Thomson

It’s a heck of a way to run a pre-election campaign. On the eve of an expected election, politicians usually spend their time playing up good news, downplaying the bad, shaking hands and kissing babies.

Energy

Twin Butte to double oil-by-rail capacity

Heavy crude on tracks delivers $4 per barrel extra, says producer

Railway tanker cars are being used by many Calgary producers to avoid pipeline bottlenecks and win higher prices. -1

Photograph by: Dean Bicknell

CALGARY — Fast-growing heavy oil producer Twin Butte Energy Ltd. says it is building cleaning/staging facilities at Lashburn, Sask., to allow it to double its rail shipments in the second quarter.

The Calgary-based company said in a news release it is currently putting 15 to 20 per cent of its heavy barrels in rail cars, thus generating a net increase of about $4 per barrel for its coffers over selling in Alberta.

On Thursday, it said its fourth-quarter production was 17,500 barrels of oil equivalent per day, up 128 per cent from 7,700 boe/d in the same period of 2011. Its weighting to oil and natural gas liquids increased to 87 per cent for 64 per cent.

It posted a net loss of $5.4 million compared with a loss of $37 million a year earlier as cash flow increased 126 per cent to $38 million from $17 million.

Twin Butte’s realized oil price in the last three months of 2012 was $59.60 per barrel, down 24 per cent from $78.36 a year earlier.

During 2012 it bought three other companies for $428 million and made two asset purchases for $34.5 million.

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